WHSmith has demonstrated strong financial performance, despite challenges in high street retail.
- The company’s travel segment saw a 22% increase in trading profit, driving overall growth.
- UK travel operations were notably successful, significantly boosting the group’s profitability.
- International growth was particularly strong, with profits rising across North America and other global regions.
- In contrast, the high street segment experienced a decline, aligning with industry expectations.
WHSmith has reported a commendable financial performance for the fiscal year ending 31 August 2024, marking a 16% increase in headline group profit before tax to £166 million. This positive outcome owes much to the robust performance of its travel business, both domestically and internationally, which counterbalances the challenges faced in its high street operations.
The travel division emerged as a key contributor to WHSmith’s success, with trading profit surging by 22% to reach £202 million. Travel revenues increased by 11% to £1.47 billion, underpinned by a 25% profit growth in the UK segment. Additionally, North America experienced a 12% rise in profits, while other international markets soared by 38%. This diverse geographical performance illustrates the company’s strategic focus on enhancing its presence in higher-growth regions.
While the travel arm of the business thrived, the high street segment did not fare as well, reflecting an anticipated downturn. Trading profits in this area fell by 9% to £39 million, with a corresponding 4% decline in sales to £452 million. Despite these challenges, the results were consistent with market expectations.
Moving forward, WHSmith is positioning itself for further expansion. CEO Carl Cowling commented positively on the company’s prospects, noting that over 90 new stores are in the pipeline globally, with 60 planned for North America alone. “Our travel divisions are trading well with a particularly strong performance from our UK Travel business,” he stated, highlighting a 20% rise in UK trading profits to £122 million. The company’s strategic initiatives include opening new stores at major airports in Dallas, Denver, and Washington Dulles, with further opportunities anticipated across the United States.
WHSmith remains confident in its growth trajectory, driven by strong travel sector performance and strategic expansion plans.
